Affected investors can register for claims against the company on Sina's investor rights platform at http://wq.finance.sina.com.cn/. Follow @Sina Securities on WeChat, search for Sina Brokerage Funds on WeChat, search for Sina Investor Rights on Baidu, or access the Sina Finance client or homepage to find the platform. From an investigation to the initial discovery of financial fraud, and now to the accountability of the actual controller, the century-old jewelry store ST Cuihua is enduring its darkest hour. The Liaoning Securities Regulatory Bureau has reported that some of the company's annual financial statements may contain false records, potentially triggering a mandatory delisting for major violations. Over the past six months, bad news for Cuihua has been relentless, like continuous rain.

First, the financial fraud surfaces.

On August 6, 2026, a notice from the Liaoning Securities Regulatory Bureau once again thrust ST Cuihua (002731), already on the brink of delisting, into the public spotlight. The notice revealed that regulatory authorities had preliminarily found that some of the company's disclosed annual financial information may contain false records, potentially meeting the criteria for mandatory delisting due to major violations. This means that the jewelry heritage brand, with over 128 years of history, is facing its most severe survival crisis since its founding. At the beginning of the year, it was first reported that the company had 254 million yuan in bank loans it could not repay, and even its operating accounts were frozen by the court. Subsequently, the China Securities Regulatory Commission (CSRC) launched an investigation. The stock price fell off a cliff from over 11 yuan to less than 2 yuan now, with market value evaporating by over a billion yuan. By May this year, because the 2025 annual report was consistently delayed, the company was investigated once again by the CSRC. The inability to release the annual report suggests either the accounts are too messy to calculate, or the hole is too big to face. Now carrying the ST label, the company is truly just one step away from delisting. More concerning is that not only is the company under investigation, but the actual controller, Chen Siwei, and major shareholder, Guo Yingjie, have also been placed under investigation.

Second, triple delisting risks loom.

Currently, ST Cuihua faces a dilemma of overlapping triple delisting pressures. The first is the risk of mandatory delisting for major violations. According to Shenzhen Stock Exchange rules, if the CSRC's final administrative penalty determines that the false financial records meet the criteria for major violations, the exchange will initiate the mandatory delisting process. The second is that the company's 2025 annual report remains "stalled," and its stock has been under a delisting risk warning (ST) since July 7. If it fails to disclose the annual report guaranteed by half of the directors within the specified period, the Shenzhen Stock Exchange will decide to terminate its listing. The third is that the company's market value has fallen below the 500 million yuan threshold. As of the close on August 6, ST Cuihua's total market value was only 482 million yuan. If it remains below this line for 20 consecutive trading days, it will trigger a trading-based mandatory delisting. For the company, delisting seems almost certain.

Third, what can investors do about their losses?

The accountability chain, from the company to the actual controller and major shareholders, has been clearly established. For retail investors, the most pressing question is: Can the money lost be recovered? The answer is yes, but you have to take the initiative to seek it. The law stipulates that if losses incurred by shareholders are due to fraudulent activities by a listed company, the company must compensate. Lawyer Liu Peng from Shanghai Huzi Law Firm stated that investors who purchased shares on or before February 9, 2026, and sold or still held shares after February 10, 2026, resulting in losses, are eligible to register for claims. This period is tentative and subject to final court judgment. Lawyers typically adopt a full-risk agency model, meaning investors do not need to pay legal fees until they receive compensation. Previous cases, such as Longyu Shares, East Group, and Zhongqingbao, have all resulted in compensation payments.